If you’re an investor looking to buy or sell gold to make a profit or save for a rainy day, why not consider wholesale gold? It is the same idea as buying paper towels or trash bags in bulk, a way to save money in the long run by committing to a larger initial outlay. So, buying gold and other precious metals in bulk will save on future costs, but there are a few considerations to cover before making informed decisions.
Below, Oxford Gold Group weighs in on the benefits and risks of going for wholesale gold as your next potential investment.
The first consideration is whether gold is the right precious metal for the portfolio in question. Investors tend to navigate toward purchasing and holding onto gold since it remains a valuable global commodity and represents stability. This commodity serves as protection for investors against recession, cyberattacks, trade wars, and more, with a value that outperforms stocks, bonds, and housing long-term.
Aside from hard cash, this precious metal is also one of the easiest items to liquidate. No matter its current spot price, gold is constantly in high demand when economic turmoil rocks global markets. Other products cannot compare, and even other commodities, like silver, do not possess the same stamina in safeguarding wealth.
A second consideration is that the gold price is not the primary benefit of buying in bulk. Whether investors buy gold in small units or larger ones, the spot price is unwavering. A group of banks and internal and external chair members determine the market price for these precious metals, and each retailer follows these guidelines accordingly.
Unalloyed gold bars, coins, and nuggets do not fetch a reduced price when sold in large quantities. In general, each bullion dealer follows three rules before deciding on a proper sale price for their gold:
Few gold bullion dealers can compete on price, but some may offer a tiny discount if it suits their purposes. For instance, if one bar of gold costs $3670.98, some bullion dealers will knock off $26.79 for an order of over 100 bars (selling at $3644.19 each).
Other factors include overhead costs and shipping, both of which considerably affect the costs of wholesale gold or other gold products. A bullion dealer is a business with set overheads, including utilities, insurance, repairs, and rent. Their smaller transactions will need higher premiums to cover the smaller gold purchases, whereas buying larger amounts from the dealer will save money on both sides.
Shipping costs matter when purchasing wholesale gold and vary considerably between retailers. For example, some dealers will deliver the gold at a cheaper rate than similar dealers or independent shipping companies. In this case, there is huge potential for savings.
Favorable wholesale prices for gold are easier to find when buying a different form of gold. Jewelry and industrial materials sold by different retailers may contain varying amounts of silver and gold. How each seller crafts the material can alter the price because of the dispersed cost of production.
Some investors prefer buying coins since these come in smaller denominations. However, investment experts like Oxford Gold Group are well-aware of the loopholes in buying old jewelry or industrial materials at wholesale prices and reselling this metal at retail prices. The process can often fetch a tidy profit.
Unfortunately, both private and government gold mints sell to bullion dealers solely. A private investor cannot purchase precious metals unless through a wholesale gold bullion dealer or a seller of materials that are heavy in gold. However, you do not have to be concerned about buying from a dealer; the parameters are strict.
For example, the United States Mint requires each company that they supply to have a license for trading numismatic coins. The mint would also check on the wholesale gold company’s:
If there is doubt around these credentials, the mint will restrict the company by keeping them from performing monetary transactions.
It is always a good idea to buy gold when it is at a low, although companies and private investors will be constantly buying and selling gold, silver, and other precious metals. If the supply of gold in the economy suddenly spikes, the gold price typically drops. The supply effect mainly occurs when:
In response, the supply of gold is enough to satisfy the levels of demand, and the market adjusts by lowering gold bullion price premiums. These conditions present a great opportunity to get into the market as a wholesale gold investor.
What is the most natural thing to do upon completing a wholesale gold purchase? Most investors will choose between putting it away for a time or having it ready to sell once gold reaches a new high.
If the choice is to put it away for emergencies or future use, investors may even store the gold in their homes or places of work. However, experts like Oxford Gold Group recommend finding a much safer place than a safe or in a box under the floorboards. Why not consider placing it into a gold IRA?
A gold individual retirement account works like a typical IRA—taxpayers place a portion of their income, stocks, bonds, or other valuable items into a fund. Choosing to invest in a gold IRA with a company such as the Oxford Gold Group means putting the actual precious metal into a deposit box in the retirement account. Investors have access to their gold at any time but can only withdraw it at the proper age.
After the age of 59, the account holder can begin to withdraw money and other assets from this retirement investment. For example, you could reclaim the wholesale gold or liquidate it at its current spot price.
Bullion wholesale gold dealers are a reliable source but finding the right match is still important.
Which form of precious metal are you looking to purchase? This choice will require some extensive research into the companies offering that form. For instance, if wholesale jewelry seems best, check out qualified online vendors or prestigious jewelers in the area.
Look at the seller’s reviews, and reach out to family or friends who are familiar with the company’s merchandise or selling habits. Narrow down the options by considering shipping prices, return policies, and other factors that could affect the transaction and cost. Before committing, investors should also converse with the vendor about their accreditation and what they can offer.
Is one dealer offering a price that seems too good to be true? Continue the search elsewhere. Some sellers offer small discounts on large bundles, but astoundingly low prices often indicate dubious activity.
These sellers of gold bullion might not have the adequate license or not receive their wholesale gold or silver from an approved mint. They may find counterfeit precious metals from other countries like China, passing them off to investors intrigued by the price point. Savvy investors will steer clear of these suppliers and locate a verified, high-profile dealer instead.
A trusted precious metals authority like Oxford Gold Group offers advice and support in this regard. The company double-checks each article with methodologies to ensure the pieces are genuine, even if that means never purchasing outside of a mint. Customer reviews also speak to the quality of service— Oxford Gold Group has a 4.9 out of 5-star average, with customers appreciating our knowledge, patience, responsiveness, and professionalism.
Oxford Gold Group is one service that is willing to show customers full transparency in every aspect discussed above. We pride ourselves on making the wholesale gold and silver buying and investing journey as simple as possible. The site’s products page covers all information you need and showcases an abundance of silver, gold, platinum, and palladium coins and bars from which to choose.
If you are new to the game, feel free to visit our learning center for how to buy, save, and invest precious metals and review our free guide to investing in gold or silver IRA. Our team is well-equipped to provide you with information on our retirement accounts, shipping procedures, or wholesale gold and other precious metal products. Call (833) 600-GOLD today!
INSIDE THIS INVESTMENT GUIDE YOU WILL LEARN:
• How Gold & Silver can protect your savings & retirement accounts
• Types of Gold & Silver products available for Home Delivery
• How a Gold & Silver IRA can protect your Retirement account